Postgame with Amount: Small Biz Banking 2024

Fixing SMB Lending at American Banker Small Biz Banking 2024

Last week, I had the opportunity to participate in the American Banker Small Biz Banking Conference 2024, where I joined an insightful panel discussion titled "SMB Lending is Broken. Here's How to Fix it!" alongside Kamal Rajan, Head of Business Products and Services at Golden 1 Credit Union and Chana Schoenberger, Editor-in-Chief at American Banker. It was an exciting experience to share insights and solutions, particularly from my role at Amount, where we've been laser-focused on solving the very challenges facing small business lending today.

The Big Takeaway: SMB Lending is at a Turning Point

Small and medium-sized businesses (SMBs) are facing a myriad of challenges when it comes to accessing capital, and it’s clear that traditional approaches aren’t cutting it anymore. Community banks and credit unions are at a pivotal moment. They have the potential to capture and retain SMB customers and members, but they need to adapt to the evolving needs of these customers and members. As I shared during the panel, SMB lending is broken, but it’s also an incredible opportunity for financial institutions that are willing to innovate. 

What Do SMBs Want?

During the panel, we dove into the needs of today’s SMB customers and members. Based on recent research, there are four core pillars that define what’s important to SMBs when choosing a financial institution (FI):

1. Accessing Capital: Of the small business owners who have applied for a new business loan over the past year (28%), 70% reported it was difficult to access capital.
2. Acting in their best interest: SMBs want FIs that prioritize their needs.
3. Adapting to customer demands: SMBs want FIs to stay ahead of the curve when it comes to technology and customer expectations. 47% of SMBs that borrowed in the last year mostly used credit from a source other than their primary FI.
4. Delivering ease-of-use: A staggering 76% of SMBs say ease-of-use is critical to staying with a bank or making a switch.
   
   This presents a golden opportunity for community banks and credit unions to step in and provide the solutions that can win SMB loyalty. But doing so requires more than just digitizing processes; it requires rethinking the entire approach to SMB lending.

A New Vision for SMB Lending

At Amount, we’ve built our platform to address these exact needs. During my panel and demo, I spoke about how we’re empowering financial institutions to offer a unified lending and deposit experience, tailored specifically for SMBs. It’s not just about automation—though that’s part of it. It’s about giving SMBs options: digital when they want it, human interaction when they need it, and always a frictionless, secure process.

During the panel, Kamal highlighted how community banks and credit unions can leverage their branch network as a competitive advantage. Instead of seeing branches as a cost center, what if we viewed them as a marketing opportunity? Think of it like a "Credit Union Genius Bar," where SMBs can get in-person help, triage their financial needs, and still have the option to engage digitally afterward. This hybrid approach creates a more personal connection while ensuring SMBs can access funds quickly—often the next day.

How to Get It Done

Implementing this change doesn't have to be overwhelming. In fact, I laid out a crawl-walk-run approach during the panel. It’s about starting small, with a handful of loans or a pilot program, and scaling from there. You don’t have to overhaul your entire system overnight; instead, focus on gradual integration and working with best-in-class vendors like Amount to ensure a smooth transition.

In November, Amount will launch a suite of 10 SMB products on our platform for Golden 1 Credit Union, further empowering the financial institution to offer everything from small-dollar loans to credit cards. These offerings aren’t just about cross-selling; they’re about providing solutions SMBs need to succeed.

Digital Solutions Drive Success

Where digital truly shines is in reducing costs while enhancing customer and member satisfaction. Manual processes are expensive and time-consuming, but digital lending—when done right—keeps costs down while delivering a seamless experience for the customer or member. At Amount, we’ve engineered our platform to support both manual and automated options, letting FIs control the balance that works best for their needs.

Final Thoughts

The SMB lending landscape is transforming, and institutions that embrace technology, focus on customer and member needs, and offer flexible, frictionless solutions will be the ones to thrive. At Amount, we’re committed to helping our partners succeed in this rapidly changing environment.

Community banks and credit unions have a unique opportunity to stand out by offering the ease-of-use and personalized service SMBs demand. With the right platform, strategy, and partners, SMB lending doesn’t have to stay broken—we can fix it, together.

Want to learn how Amount can help your institution improve SMB lending, offer a seamless digital experience, and optimize both manual and automated processes? Reach out to sales@amount.com to explore how our solutions can drive efficiencies and meet the evolving needs of your SMB customers and members.